Developing a Provider Organisation

1. Developing a Provider Organisation Mark Jones 17 November 2006

2. Opportunity • Providing is the financial opportunity not commissioning • The government still wants to move activity out of the hospitals and into Primary Care • West Herts PCT supports this agenda? • Withdrawal of services at Hemel Hospital may create a big opportunity • The PCT wants to deal with a single GP provider organisation? • Should DacCom be the vehicle for this? Mark Jones

3. Contracts • We may be able to secure a position as a preferred provider • And avoid the need for competitive tenders • The DoH is progressively reducing requirements for tender • And there is no requirement if the provider organisation owns a patient list Mark Jones

4. Conflicts of interests • There is a theoretical conflict if GPs have both commissioning and provider roles • Others take a robust view • The PCT has both roles • Commissioning organisations elsewhere have taken on a provider role? • If necessary, DacCom could devolve its commissioning role Mark Jones

5. SWOT analysis Mark Jones

6. Business structure • Ensure a fair return for all participants • Resource providers • Administrators • Referring practices • Avoid competitive tenders if possible • Ensure conflicts of interest are addressed • Address our areas of weakness • Secure buy-in from the PCT • Identify and address any need for capital investment • Take account of other stakeholders / players • Hospital trust • Commercial providers • Neighbouring clusters Mark Jones

7. What are we asking for today? • Agreement in principle that DacCom should seriously consider developing a provider function • Identification of major issues and red lines Mark Jones

8. What will we do next? • Develop an outline business model • Open discussions with the PCT regarding a provider role • Seek approval from the Practices before proceeding further Mark Jones